Friday, July 03, 2015

Bill Murphy & Bob Hoye

July 3, 2015

Featured Guests
Bill Murphy & Bob Hoye
Please listen here:


Summary:
  • Bill Murphy from GATA.org and the host discuss the summer doldrums, noting how financial troubles in the EU have turned capital flows to the perceived safety of US equities / dollar.
  • However, the tactic could backfire as the temporary safe haven has enormous debt burdens as well.
  • For instance, the Governor of Puerto Rico announced this week that $70 billion in debt is unpayable, much smaller than the $400 billion owed by Greece.
  • The US is the grand champion of debt with unfunded liabilities are $210 trillion, five times the EU's unfunded burden of $40 trillion (Dr. Kotlikoff, 2015).
  • When unfunded liabilities are excluded and only debt on the books is examined, the US, UK and many competing nations share similar debt levels as Greece (Figure 1.1.).
  • Media reports suggest that China has accumulated over 10,000 tons of gold in preparation to back the Yuan with the metal, making it the new de facto global reserve currency.
  • Bill Murphy notes that the when the PMs bear market ends, prices will explode higher.
  • The host forecasts that after 2 small hikes in the benchmark rate in September and again in December, the Fed will pause, presenting an excellent opportunity to increase dollar cost averaging efforts.
  • The gold repatriation theme is gaining momentum as even US states demand billions of their gold reserves are returned.
  • Are officials positioning their chess pieces in anticipation of a new global reserve currency?
  • Bob Hoye, senior investment strategist at Institutional Advisors, and the host unravel the latest Greek drama.
  • After months of warning of a Cypriot-like moment in Greece, on Monday morning depositors were locked out of Greek banks. Only ATMs were functional, most of which have low withdrawal limits imposed. ATMs were emptied quickly, as seen in the following video.
  • The US may face a Grexit via a Puert-xit, as the Puerto Rico province battles creditors over billions of unpayable debts (Figure 1.2).
  • Several states / municipalities are approaching Detroit-style bankruptcies.
  • It's advisable for every household to prepare for something similar by increasing PMs exposure as well as stockpiling dried / canned goods / cash, etc.
  • The trouble seems to stem in part from a misunderstanding regarding debt. Debt is a valuable leverage instrument when times are solid, yet when future prospects sour, the leverage enhancing tool can become an unbeatable burden.
  • A gold market trend confirmation method involves the gold/CRB ratio ($Gold:$CRB) ratio.
  • When the ratio is above the trend line, a bull market is present, as gold outperforms the commodities-sector proxy.
  • Fed governors John Williams and Jerome Powell, expressed their hawkish rate epistemologies.
  • Instead of "one and done", "two and done, maybe" seems likely, suggestive that the benchmark rate will be hiked for the first time since 2008 in September and the second increase in December.
  • Analysts at leading investment bank Goldman Sachs reconfirmed earlier comments that the US dollar and euro would trade at parity before 2016, hinting at continued greenback strength.
  • Bob Hoye and the host share Peter Spina's sentiments that under such a deflationary environment, gold tends to hold its value relative to virtually every other asset price.

Show Host
Chris Waltzek:
About Chris
Contact Host:

Please listen here:

Dial-Up Real Audio
MP3
FAST Download:
Highest Quality Download:
Right Click Above and "Save Target As..." to download. To learn more about software needed to play the above formats, please visit the FAQ.

NEW - Hotline - Q&A:
1-206-666-5370

Friday, June 26, 2015

Peter Schiff, Louis Navellier, and Listener's Q&A

June 26, 2015

Featured Guests
Peter Schiff, Louis Navellier, and Listener's Q and A
Please listen here:


Summary:
  • Friends of the show call in with their questions and comments.
  • The first caller wants to know if it is prudent to buy or rent a home.
  • The Rule of 100 yields a home price estimate - multiply comparable monthly rent by 100: $1,000 per month in rent suggests a price of $100,000.
  • Gold and silver remain the quintessential portfolio insurance - when every other asset fails, gold and silver lined life boats will save the day.
  • Given Dr. Ron Paul’s latest video (Figure 1.1.) where he claims that millions of investors will be wiped out in the coming financial collapse
    the precious metals remain an essential asset class for every portfolio.
  • A 25% allocation is sufficient to offset financial carnage.
  • Younger investors are advised to increase the allocation percentage while seniors can use PMs dividends to boost investment income.
  • Investors are encouraged to use the sluggish price levels as an opportunity to lower their dollar cost average gold / silver price.
  • PMs facilitate higher asset risk without jeopardizing overall safety, and as every student of finance knows, higher risk can equate with improved reward when managed scientifically.
  • Gold and silver are the bedrock / cornerstone of a portfolio. Would you try to build a house without a foundation?
  • Investors are urged to ask how much they can lose without a solid PMs foundation before asking how much they can gain from a popular stock.
  • The Alpha Stocks Portfolio is facilitated by a rigorous correlation matrix analysis to maximize overall return and minimize losses.
  • Alpha stocks portfolios regularly offer expected returns of 30-50% annually and zero expect losses (optimized portfolio results).
  • The portfolio facilitates peace of mind of knowing that funds are maximized and losses minimized.
  • For a limited time, new subscriptions are offered with zero risk, if you are not satisfied after the first 30 days, a refund is issued and account canceled without further obligation.
  • John from San Diego expresses doubts about the economic recovery.
  • Vidya anticipates a stock market buying opportunity after a correction.
  • Louis Navellier insists stock-picking in strong sectors is essential, such as technology, health-care, consumer durables / staples, and home improvement.
  • He shares several investing opportunities, including: CVS pharmacy (CVS) and Blow's home improvement (LOW).
  • Domestic small-cap / mid-caps are preferred over large-cap, which have higher dollar exposure.
  • The political backlash against rate-hikes could be intense, putting a ceiling on the benchmark rate.
  • Increasing the allocation of gold and precious metals is advisable, particularly for European investors due to dollar strength and relative euro weakness.
  • As capital inflows intensify, the US economy could grow its way out of the debt issues.
  • Given that Fed rate cuts are instrumental to protracted stock market rallies (Figure 1.1), cut the imminent rate hikes halt the seven-year, equities bull-market?
  • Peter Schiff, Chairman of SchiffGold.com says the Fed is bluffing - if the officials pull the QE plug, the national economic engine will stall.
  • While the world is focused on the Grexit, Peter Schiff says the US debt problem is much worse, making default an inevitability and the precious metals safe haven the investment du jour.
  • The gold repatriation movement is gaining momentum, not only abroad, but now domestically - the Lone Star state has requested the return of its $1 billion gold reserves from the Fed.
  • Peter Schiff and company have found the perfect panacea, a gold digital currency (gold-backed Bitcoin).
  • The symbiotic partnership with the Perth Mint in Australia virtually guarantees minimal fees and geographic diversification - a most overlooked yet essential portfolio planning criteria.
  • For listeners who host online businesses, Peter Schiff suggests his Schiff Bank Referral program as an income-stream generating opportunity.
  • Prospective home buyers, those who missed the housing crash nadir of 2012 could be treated to discounts as institutions and hedge funds unload inventory in the coming years.


Show Host
Chris Waltzek:
About Chris
Contact Host:

Please listen here:

Dial-Up Real Audio
MP3
FAST Download:
Highest Quality Download:
Right Click Above and "Save Target As..." to download. To learn more about software needed to play the above formats, please visit the FAQ.

NEW - Hotline - Q&A:
1-206-666-5370
http://silverinvestor.blogspot.com/